A liquidity bootstrapping program for deBridge’s upcoming DBR governance token is underway via Solana decentralized exchange integrator Jupiter’s LFG Launchpad ahead of a token creation event on Thursday.
The DBR LFG launch, hosted by the deBridge Foundation, is claimed to be unique compared to its predecessors. According to a statement shared with The Block, the launch offers fixed prices for all participants with no bonding curve.
The bonding curve is a standard pricing model that determines how the price of a token increases as more tokens are purchased during a launch event.
Eligible whitelist participants can deposit up to $5,000,000 in USDC stablecoin to bid at DBR’s initial price of $0.025 per token prior to official launch, the team explained. This gives the project a fully diluted valuation of $250 million. Each individual address on the whitelist has a deposit limit of $25,000 in USDC.
Solana-based tokens will have a total token supply of 10 billion. deBridge told The Block earlier this year that it was designed to decentralize governance power to the community by handing control over to the DAO. The goal is to ensure that no single party can dominate or make decisions based on their own interests rather than those of the DAO as a whole.
The LFG repository will remain open until 8 a.m. UTC on October 16, the team said. Available to participants who have used the deBridge app for at least 10 days prior to the July 23, 2024 deadline and have staked at least 690 JUP tokens at the time of the snapshot.
The launch comes after Jupiter presented three “OG” Solana projects in February as potential candidates to become the next tokens to launch on its new LFG launchpad, with deBridge highlighted as one of the candidates. The Jupiter community has since approved deBridge’s use of the platform as a crowdsale venue for DBR through a Jupiter-based liquidity pool.
deBridge’s Token Creation Event and Next Steps
deBridge’s token creation event is scheduled for 8 AM UTC on October 17, with trading starting at $0.03 per DBR ($300 million FDV). The team confirmed that tokens earned through the LFG launch will be distributed with 50% immediately usable by TGE, with the remaining 50% to be released six months later.
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By staking DBR tokens, deBridge token holders can participate in DAO governance voting on protocol parameters, including selecting active validators, setting minimum consensus thresholds, deploying smart contracts, and upgradability. The DAO also manages the project’s treasury and ecological reserves, with responsibilities gradually increasing over time.
Once deBridge’s delegated staking and slashing modules are enabled, you can also support deBridge validators by staking DBR tokens. Staking DBR increases a validator’s severable collateral, which acts as a form of insurance, protecting against potential problems such as validator downtime, censorship, and collusion.
Overall, deBridge’s token distribution is set to allocate 20% of the supply to the community, with a circulating supply of 1.8 billion DBR at launch. Of the remaining supply, 26% is allocated to ecosystem support, 20% to core contributors, 17% to strategic partners, 15% to the deBridge Foundation, and 2% to validators.
What is DeBridge?
deBridge differs from the popular bridging model, where users lock tokens on one chain and receive equivalent wrapped assets on another chain. This is one of the most common bridge vulnerabilities exploited in the industry.
Instead, deBridge is designed to enable direct liquidity transfer between chains, eliminating the need to lock assets, reducing complexity and improving transfer efficiency.
DeBridge claims to have the largest bridge economy on web3, generating $7.5 million in annual fees to date, according to Token Terminal data.
Last week, deBridge released Hooks for cross-chain data transfer and Dapp triggering. For example, an application running on one blockchain can now receive deposits from another network in a single transaction.
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